Gold Hits $5,595 as BRICS Overtakes U.S. Treasury – What Investors Must Know

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• Gold hits historic highs above $5,500 amid a weakening U.S. dollar and BRICS gold accumulation.
  
• BRICS nations’ gold-backed currency and reduced dollar holdings signal a shift in global reserve strategy.
  
• India explores de-dollarization, potentially influencing other state-owned enterprises.

Gold prices surged above $5,500 per ounce, reaching an intraday record of $5,595.41 as futures rallied more than 20% year-to-date. The rally comes amid a historic shift in global monetary dynamics, fueled by a weakening U.S. dollar and BRICS nations’ expanding gold reserves, now surpassing U.S. Treasury holdings for the first time since 1996.

Gold Futures Soar on Dollar Weakness

Gold futures jumped on Wednesday following the Federal Reserve’s decision to hold interest rates steady, while the dollar slid to its lowest level since early 2022. Analysts attribute the surge to dollar weakness and expectations of easier Fed policy, which have intensified what experts call a “debasement trade.”

Robin Brooks, senior fellow at the Brookings Institution, noted that the dollar’s decline has “supercharged the rise in gold,” a sentiment echoed by Ole Hansen, head of commodity strategy at Saxo Bank, who warned that continued fiscal debt creation is undermining confidence in fiat currencies.

BRICS Gold Reserves Reshape Global Markets

BRICS nations now control roughly half of global gold production, with combined reserves exceeding 6,000 tonnes. Russia leads with 2,336 tonnes, China holds 2,298 tonnes, and India maintains 880 tonnes. Central banks in these countries have been purchasing over 1,000 tonnes annually for the past three years, representing more than half of global gold acquisition from 2020 to 2024.

In December 2025, BRICS launched a pilot gold-backed currency called the Unit, composed of 40% physical gold and 60% BRICS currencies. This initiative signals a potential shift away from the U.S. dollar as the dominant reserve currency, especially as BRICS reduced their dollar holdings from 58.2% in 2024 to 56.92% in early 2026.

India Explores De-Dollarization Amid Rupee Weakness

India is taking steps to reduce reliance on the U.S. dollar. The Indian Railway Finance Corporation (IRFC), a state-run entity, is considering swapping part of its $8 billion USD-denominated loans into Swiss francs to limit foreign exchange losses amid a declining rupee. This move could pave the way for other state-owned companies to follow suit, particularly ahead of India hosting the BRICS summit in New Delhi this year.

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Gold analysts are bullish. Deutsche Bank set a 2026 target of $6,000 per ounce, while Goldman Sachs expects $5,800. Other precious metals are also seeing gains: silver is up 50% YTD at $116 per ounce, platinum has risen 29%, and copper topped $13,000 per ton. Central banks’ continued diversification away from dollar assets suggests the gold rally may have further room to run.

Gold’s recent surge highlights a historic pivot in global finance. With BRICS nations accumulating gold at record levels and India exploring de-dollarization strategies, the dollar’s influence may continue to wane, positioning gold as a key hedge in uncertain markets.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.